MSc in Financial Mathematics

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MSc Financial Mathematics

If finance and maths intrigue you and your dream is to work at Wall Street, an MSc in Financial Mathematics is the best course for you after completing your bachelors! The field offers you great exposure to financial maths and statistics. It opens doors to working at brokerage firms, banks, insurance companies, stock exchanges, etc. An MSc in Financial Mathematics prepares you for the global financial market that allows you to work anywhere around the world.

Course MSc in Financial Mathematics
Duration 2 years
Average Course Fees INR 42,56,800
Average Salary $89,000 per annum (INR 65,20,800)

Also Read: 9 Important Functions of Stock Exchange

What is Financial Mathematics?

Financial Mathematics is the application of maths in financial problems of an organization. Some of the major topics include probability, analytics, stochastic processes, and economic principles. Typically, financial mathematics approaches have been used by financial institutions, commercial banks, hedge funds, insurance firms, business administrations, and government regulators. A Financial Mathematician resolves issues in derivative securities pricing, portfolio design, risk assessment, and situation modelling

Check Out: Financial Engineering as a Career Option

Eligibility Criteria

The following are the basic requirements for obtaining an MSc in Financial Mathematics:

Credit: Warwick Business School

Syllabus of MSc in Financial Mathematics

Before you apply for the course, you must know what you are in for. After learning the syllabus of MSc in Financial Mathematics, you can make an informed decision.

Semester 1

  • Multivariate Calculus and Mathematical Analysis
    • Vectors
    • Differentiation in Several Variables
    • Vector-valued Functions
    • Maxima and Minima in Several Variables
    • Multiple Integrations
    • Line Integrals
    • Surface Integrals
  • Fundamentals of Statistics
  • Modelling and Simulation
    • Differential Equations
    • First Order Differential Equations
    • Linear Second Order Differential Equations
    • Applications of Linear Second Order Differential Equations
    • Laplace Transforms
    • Systems of Linear Differential Equations
    • Introduction to PDE
  • Mathematical Methods in Finance

Semester 2

  • Numerical Techniques in Finance
    • Lattice Methods
    • The Binomial Tree
    • Review of Continuous-Time Finance
  • Numerical Solutions of Parabolic PDE’s
    • Numerical and Combinatorial Optimization
    • Dynamic Programming and Allocating Investments
    • Kov Chains and Sequential Decision Making
    • Networks and Graph Theory
    • Linear Programming and the Simple method
    • The Theory of Games
    • Scheduling Problems
  • Economic Analysis and Principles of Financial Management
    • Economic Analysis
    • Principles of Financial Management
  • Stochastic Calculus and Black-Scholes Theory
    • Stochastic Calculus
    • Black-Scholes Theory
  • C Programming/Mathematical Softwares
    • Algorithms
    • Mathematical Software

Semester 3

  • Discrete-Time Modelling and Derivative Security
    • Discrete-Time Modelling
    • Derivative Securities
  • Portfolio Theory and Asset Allocation
    • Financial Risk Management
    • Modelling of Bonds, Term Structure, and Interest Rate Derivatives
    • Bonds and Term Structure
    • Interest Rate Derivatives
  • Time Series Analysis

Semester 4 

  • Mathematical Finance Dissertation/Project
    • Construction of Martingale Pricing Measures by Maximizing Entropy
    • Continuous-Time Limit of the Binomial Model
    • Estimating Volatility using Arch Models
    • Optimal Investments using Utility Functions
    • Real Options
    • Mean-Var Portfolio Theory
    • Liquidity Risk Using Var
    • Valuation Of Companies Using Real Options Coherent Risk Measures
    • Capital Structure
    • Optimal Portfolios in the Heath-Jarrow-Morton Model
    • Conditional Value at Risk
    • Applications of Change of Numeraire for Option Pricing
    • Copulas in Finance
    • Single-Factor Short Rate Models
    • Modelling Credit Risk – A Structural Approach
    • Credit Risk – Reduced Form Approach
    • Credit Risk – Probabilities of Default
    • Stochastic Backward Equations In Finance
    • Computer Simulations of Interest Rate Models
    • Stochastic Differential Delay Equations in Finance
    • Methods of Designing Pension Schemes
    • The Fundamental Theorem of Asset Pricing and its Extensions
    • Implied Volatility, Volatility Smile, Stochastic Volatility
    • Complete Market Models Implied by Call Options
    • Monte Carlo Valuation of American Type Derivative Securities
    • Microscopic Simulation of The Stock Market
    • Pricing Weather Derivatives by Utility Maximization
    • Arbitrage Pricing of Mortgage-Backed Securities
    • Computer Implementation of Finite-Difference Option Pricing Schemes

Also Read: Best Stock Trading Courses 

Top Colleges in the World for MSc in Financial Mathematics

The course is highly exclusive and is only available at the top universities around the world

University Tuition Fees University Page
McMaster University, Hamilton, Canada INR 27,18,015 Explore Now!
University of Leeds, Leeds, United Kingdom INR 25,47,450 Explore Now!
The University of Chicago, Chicago, USA INR 45,15,160 Explore Now!
University College London, London, United Kingdom INR 31,42,144 Explore Now!
London School of Economics and Political Science, London, United Kingdom INR 26,96,350 Explore Now!
Dublin City University, Dublin, Ireland INR 14,20,320 Explore Now!
University College Cork, Cork, Ireland INR 15,79,550 Explore Now!
University of Nottingham, Nottingham, United Kingdom INR 25,20,950 Explore Now!

Also Read: Courses and Universities for Masters of Finance

Employment Areas

Since your expertise lies in financial mathematics, major fields of employment will be where you need to use your mathematical skills in the financial sector. 

  • Brokerage Firms
  • Institutes of Higher Learning
  • Banks and Insurance Firms
  • Stock Exchanges
  • Coaching Centres

Also Read: Career in Financial Management

Top Job Profiles After MSc in Financial Mathematics

There are great job opportunities after you pursue MSc in Financial Mathematics that allow you to implement your knowledge in the field. 

Job Profile Average International Package
Mathematician INR 52,50,455
Statistician INR 66,89,090
Treasury Management Specialist INR 50,51,310
Economist INR 71,74,120
Demographer INR 38,02,860
Loan Officer INR 52,20,735
Computer Programmer INR 63,50,820
Researcher & Accountant INR 65,31,480

If you want to study MSc in Financial Mathematics in the top universities of the world, our expert consultants at Leverage Edu can help you throughout your study abroad journey from application process to visa, So, what are you waiting for? Book your FREE Consultation call today or simply call us at 1800 57 2000. 

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